THE SOUTH AND THE NEGRO ARE THE MOST DEPRESSED SEGMENTS OF THE ECONOMY AND THE POPULATION, AND IMPORTANTLY, THE EXTENT TO WHICH NEGROES ARE ABSORBED INTO THE ECONOMY WILL DETERMINE THE PACE WITH WHICH THE SOUTH REACHES PARITY OF INCOME LEVEL WITH THE REST OF THE NATION. IN COMPARISON WITH WHITES, NEGROES HAVE GAINED ONLY SLIGHTLY IN INCOME AND DOLLAR GAP, EMPLOYMENT, OCCUPATIONS, AND MANPOWER UTILIZATION. THE FINDINGS OF STUDIES OF THE EMPLOYMENT SITUATION OF NEGROES ALSO POINT UP THE CUMULATIVE EFFECTS OF SEGREGATED EDUCATION AND DISCRIMINATION ON EMPLOYMENT. THE INADEQUACIES OF A SEGREGATED EDUCATION ALSO CREATE AN INADEQUATE FLOW OF MANPOWER FOR THE FEW JOBS THAT ARE AVAILABLE. IN GENERAL, VOCATIONAL AND TECHNICAL TRAINING FOR NEGROES APPEARS TO BE LIMITED TO TRADES WHICH SERVE THEIR OWN RACE OR TO OBSOLESCENT INDUSTRIES. NEGROES ARE NOT BEING TRAINED FOR INDUSTRIES WITH GROWING MANPOWER NEEDS, LIKE ELECTRONICS, TOOL DESIGN, OR BUILDING TRADES. MAJOR "REVOLUTIONARY" CHANGES IN THE MANPOWER UTILIZATION AND DEVELOPMENT OF NEGROES ARE NEEDED TO IMPROVE THEIR SITUATION. THE INFLUENCE OF PUBLIC POLICY ON THE DESEGREGATION OF SCHOOLS, HOUSING, AND PUBLIC FACILITIES, AND ON EQUAL EMPLOYMENT OPPORTUNITY, IS INTEGRALLY RELATED TO IMPROVING THE NEGRO'S ECONOMIC POSITION. TWENTY-FOUR TABLES SUMMARIZE DATA ON POPULATION DISTRIBUTION, INCOME AND SALARY, AND OCCUPATIONS AMONG NEGROES AND WHITES IN THE SOUTH AND IN THE NATION. (NH)